Push Push Push!
Push Push Push!
1:14pm EDT: I just came back and was a bit surprised to see the tape so far ahead of itself on such a low volume trading day:
We are now close to the 50% fib mark which is good enough for me to add more positions here and again at 1020, the 61.8% fib mark once we get there. And courtesy of market maker volatility monkey business the premiums on my existing March puts have been degraded to the point where I am actually in the negative on the ones I bought around 1040. Fine by me – just another opportunity to add long term positions.
Let’s see who’s going to have the last laugh a few months down the line.
I don’t like what I’m seeing in the Dollar right now. It seems that a final drop into 75-76 is becoming a possibility just as I pointed out last week. The pattern we’re painting right now looks just like the ‘boiling frog treatment’ the Dollar bulls received last June/July. Which most likely would support new highs in equities as well – I suggest you keep some powder dry for next week (i.e. cash to throw at puts at lower premiums).
There won’t be a wrap up post today – I’m going to retire early – had a very busy two weeks and I’m going to throw back a cold one and start the long weekend in style early. Whatever you rats have planned – forget about the market for a few days – spend time with your loves ones and enjoy what’s left of this summer. Because things are going to get very interesting in a very short order and you want to be mentally prepared.
I’ll probably post a quick update on Monday – cheers!
Mole